Scott's Camera Shop Started the Year with Total Assets of $80,000

question 13

Multiple Choice

Scott's Camera Shop started the year with total assets of $80,000 and total liabilities of $40,000. During the year, the business earned revenues of $120,000 and incurred expenses of $70,000. Scott made no additional capital contributions during the year, but did make withdrawals of $60,000. Calculate Scott's net income for the year.

• A)$50,000
• B)$120,000
• C)$70,000
• D)$80,000

---

Definitions:

Operation Indicated

The specific mathematical operation suggested or required by a problem or equation.

Simplify

To reduce something to its simplest form or most basic elements.

Simplify

To make something less complex or less complicated, often by reducing it to its basic elements.

Simplify

To make something less complicated or easier to understand, often by reducing complexity.